A Look At Beckton, Dickinson After The CareFusion Deal

A Look At Beckton, Dickinson After The CareFusion Deal

Summary

At the moment, I am looking for healthcare companies to add to my dividend growth portfolio. Over the past several months, I have added to my position in Medtronic.

In this article, I am going to analyze Becton, Dickinson, and see whether I should add to my tiny position.

If the analysis shows that BDX is suitable, I will have to choose between it and MDT.

Introduction

I haven’t bought any shares in December yet. I am looking for healthcare and telecom companies as I don’t have enough exposure to these sectors. It is hard enough to find decent investments at the current price environment, and when I am looking for specific sectors, it becomes even harder. The company I will choose will be my last buy for 2016.

I am a fan of Medtronic (NYSE:MDT). I have been increasing that position over the past two months, as I like the growth, valuation and future growth opportunities. However, before I choose to increase the position, I am willing to analyze one of its peers, which I own as well. It is Becton, Dickinson (NYSE:BDX), and by analyzing it, I will be able to decide which position I am willing to expand.

While both companies offer pretty low yield, they offer a low payout ratio and pretty fast growth. Another peer is Abbott (NYSE:ABT), but I am not willing to increase this position, as it is large enough for me at the moment. Besides, Abbott offered a very disappointing dividend increase, and it implies that the management sees some hardships in the near future.

Becton, Dickinson and Company develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products worldwide. It operates in two segments, BD Medical and BD Life Sciences. With these two segments, the company offers a wide collection of products.

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